November 14, 2023

Our stop loss has been hit, so we need to stay disciplined and exit the trade. We’ve seen back-to-back losses for the first time since early February of this year and, believe me, more losses will come. But, as we all know, by staying disciplined and continuing to stick with our high-probability approach we will be successful over the long haul and that’s what truly matters. Remember, we need to allow the law of large numbers to work in our favor, and taking stop losses, when the time calls, keeps us moving in the right direction.

Cabot Options Institute Quant Trader – Trade Alert (SPY)

S&P 500 ETF (SPY)

The Trade

Simultaneously:

Buy to Close SPY December 15, 2023, 445 call strike
Sell to Close SPY December 15, 2023, 450 call strike
Buy to Close SPY December 15, 2023, 380 put strike
Sell to Close SPY December 15, 2023, 375 put strike … for a total of $3.00. (As always, the price of the spread can vary from the time of the alert, so please adjust accordingly.)

If you have any questions please do not hesitate to email me at andy@cabotwealth.com.

Andy Crowder

Andy Crowder is a professional options trader, researcher and Senior Analyst at Cabot. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.